The cost of gas has continued to inflate over the past thirty years. Gasoline companies vie for your valuable business by offering tempting rebates and other conveniences. Exxon makes it easier for you to buy; all you need to do is wave your card and fill up. "Speedpass: It's more convenient than cash and faster than a credit card." How much do you want to pay for convenience? Stop and think before you apply for another credit card. What impact will an additional credit card have on your credit score? Your credit score goes down a few points each time you apply for credit. Your credit score goes down when you use unfavorable "consumer" credit. Gas company type of credit isn't considered prime by mortgage lenders. In fact, the type of credit you use influences ten percent of your credit score. Saving a little money for gas can cost you a lot of money in higher interest rates on your mortgages. Also, gas company credit cards usually charge a higher interest rate than a major credit card like a bank Visa or MasterCard account. Check the annual fee. Some companies charge as much as $79 in annual fees. The big problem with gas credit cards--consumers let the account balance roll over to the next month and end up paying interest charges on top of the expensive gas. Will the 5 percent rebate make up for all these charges? Now, for the good news... Some banks offer quality Visa cards with rebates for gas purchased at any gas station. For instance, MBNA America Bank's AAA Diamond Advantage Visa gives you both reward points and gift certificates. Other banks like Citibank partner with gas companies to issue a MasterCard with a 5 percent gas rebate and 1 percent rebate on general purchases. When you make the minimum number of purchases, your annual fee is waived. Maybe it's time to transfer your airline mile credit cards into gasoline reward cards. Choose your credit wisely. Determine your financial goals. Do you want to build wealth in real estate? Then make your number one priority for your credit: mortgage finance qualifications. Weigh your options of gas rebates with the bigger picture. Copyright 2006 Jeanette J. Fisher |
